Land Securities sells Canary Wharf office block to BlackStone for £196 million
FTSE 100 member Land Securities has sold a Canary Wharf office building for close to £200 million.
The commercial property developer said it sold 6-9 Harbour Exchange to a property fund run by private equity giant BlackStone.
BlackStone’s European Property Income Fund (BEPIF) has paid £196.5 million for the property, representing a net yield of 4% for Land Securities.
The 278,198 sq ft building houses a data centre and office space. Built in 1989, it is currently occupied by Equinix, which has 20 years left on its lease.
Landsec said the disposal was in line with the strategy it set out last month of focusing time and investment on Central London offices, major retail destinations and urban neighbourhoods in London and other major regional cities.
Marcus Geddes, managing director central London at Landsec said: “The sale of Harbour Exchange is very much aligned with our strategy. Through this disposal we are recycling capital into opportunities where we can bring to bear Landsec’s skills and expertise to drive growth and returns for our investors.”
Shares in Landsec rose 6p or 0.8% to 708p.
BlackStone’s European Property Income Fund was set up earlier this year and primarily targets property in the logistics and office markets.
